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Caribbean trade with Africa is booming as the traditional routes are eroding

The secretary-general of the Caribbean bloc, who spoke on Monday in light of the looming uncertainty surrounding its traditional trading partners, said that Caribbean nations were looking to "decisively expand" opportunities for trade with Africa.

Why it's important

In a time of increasing protectionism, stronger trade ties would be a major economic shift for a region that relies heavily upon trade with the U.S.A., Canada, and Europe.

Washington imposed an initial 10% tariff in April on almost all of its trading partners. It has been levying its power to influence domestic Caribbean policies on issues such as Cuban medical services and citizen-by-investment programs.

KEY QUOTE

Carla Barnett, Secretary-General of Caribbean Community (CARICOM), said that "we must open the doors to greater trade and investment between our regions" at the opening ceremony of the AfriCaribbean Trade and Investment Forum held in Grenada.

"CARICOM's trade with the Continent needs to grow beyond its current levels, which are less than 3%. This is especially true given the uncertainty surrounding trade with our traditional partners."

By the Numbers

According to the latest data of the Observatory of Economic Complexity, CARICOM's biggest trading partner is the United States.

According to OEC figures, the U.S. purchased a quarter ($38.8 billion) of the $33.4 billion in goods shipped by the bloc throughout 2023 and sold 39% of the $43.4 billion of goods imported.

CONTEXT

Caribbean nations are particularly vulnerable to global shocks like inflation and pandemics due to their dependence on tourism, imported fuel and food, and their exposure climate-related disasters.

Barnett noted that the region had already worked with Africa in unsuccessful campaigns to demand slavery reparations and compensation for climate change from wealthy nations. (Reporting and editing by David Gregorio; Sarah Morland)

(source: Reuters)